Friday, May 6, 2011

Soak the Rich: Week 1 Progress

As part of a somber, earnest effort to support the 2012 re-election campaigns of Sherrod Brown and Barack Obama, I’ve begun tackling the only flaw in modern liberalism: who’s gonna pay for it? Starting at the top of the S&P 500 index – that’s a big list of bad companies, for those of you with Master of the Arts in Community Organization degrees – I’ve already wrung some extra cash out of The Rich who live to keep The Middle Class down.

Because the ticket to a successful entitlement state is soaking the nation’s wealthy to the appropriate degree, this is an important endeavor. What have we accomplished so far?

This week we soaked Apple and Exxon Mobil, currently the two largest corporations in the S&P 500 by market capitalization. By doubling each company’s corporate income tax burden and taking 100% of CEO compensation, we’ve taken great strides toward funding the programs Sherrod Brown and Barack Obama know we need!

Grand Accomplishments

Fiscal year 2011 US budget deficit reduced from $1,620,000,000,000 to $1,593,832,330,000

Annual deficit reduction as a percentage of the current total: 1.615%

Unintended Consequences That Won’t Occur

None of the corporations’ combined 133,000 jobs will be lost

None of the funds or individuals holding the corporations’ combined 5,924,800,000 shares of common stock will be ruined

Domestic and foreign lenders will not stop investing in American companies or entrepreneurs

Talented workers and business leaders won’t flee the country

Other corporations won’t relocate overseas

Things That Won’t Get More Expensive

MP3 players, laptops, tablet PCs, mobile phones, or software for any of the preceding

Gasoline, plastics, or natural gas

Here’s the simple fact crazed conservatives forget: the federal government should control everything. If Apple or Exxon raise prices in response to higher taxes, the government can penalize them – or shower stimulus spending & tax exemptions on their competitors. If Apple or Exxon fire employees, reduce dividends, or move jobs overseas, the government can penalize them further still. There are any number of ways heroes like Sherrod Brown and Barack Obama can bridge the gap between free markets and fair markets!

In one short week, we’ve made what the Democratic Party’s budget wizards might call “Progress.” Some small deficit remains, but there are many other fat-cats who don’t contribute enough to America’s nationwide, knee-deep safety net. Rest assured, dear leftist brothers; they will be soaked.

Since WWII, the average federal revenue has been 18-20% of GDP. This holds true whether the top tax rate is 80% or 30%. This is historical fact. Raising taxes does not increase revenue. A healthy economy increases revenue.

Typically, with spending around 21% of GDP, deficits were run before under both parties. There's no denying that. But the spending took off like a rocket under Democrat control in the last 4 years. Our spending is now 25% of GDP. It is unprecedented spending since WW2 levels.

Thats why we have deficits now, that are FOUR times larger than the higher ever under Bush.

The deficit is not because of not taxing enough. Its because of spending so much.

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